- Bitcoin crumbles under selling pressure from rising BTC exchange reserves.
- 10xresearch suggests that Bitcoin has likely dropped under $60,000 into a new trading range and a new all-time high is unlikely.
- BTC hovers around $60,000, political developments in the US and macroeconomic developments emerge as market movers.
Bitcoin (BTC) dipped under $60,000 on Monday as the sentiment among market participants turned from fear to “extreme fear.” A research report from 10xresearch confirms the emergence of two key market makers, political developments in the US and macroeconomic events this week.
Analysts state that the US government’s $2 billion Bitcoin transfer marked the end of the asset’s rally and that BTC has likely dipped lower into a new trading range. The possibility of a new all-time high is relatively low with rising BTC exchange reserves.
Bitcoin supply on exchanges rises alongside mounting selling pressure
Data from on-chain intelligence platform Santiment shows that BTC reserves on exchanges climbed to 1.92 million, up from 1.91 million in July end. Rising supply on exchanges is characteristic of increasing selling pressure since a higher volume of BTC is available in exchange wallets for sale.
 [21.23.58, 12 Aug, 2024]-638590758239845267.png)
Bitcoin supply on exchanges vs price
Bitcoin slips to lower trading range, drops out of $60,000 to $70,000
Analysts at 10xresearch identified the key market movers for Bitcoin in July: Mt.Gox payouts and political developments in the US. As former US President Trump’s speech at the Bitcoin conference “failed to live up to the hype,” and the government transferred nearly $2 billion in BTC, it likely marked the end of the asset’s rally.
After holding steady in the $60,000 to $70,000 range, Bitcoin has dipped under the psychological support level. BTC has likely suffered a decline and a new trading range between $50,000 to $60,000 has formed.
Amid US macro developments and expectations from crypto’s emergence as a “political issue” in the nation, a new Bitcoin all-time high is unlikely.
The 10xresearch analysts note:
“Although Bitcoin successfully tested the January Bitcoin ETF high with its Monday, August 5 drop to $49,100, we suspect the trading range has shifted lower towards the $50,000 to $60,000 range as Bitcoin ETF buying has run dry. Stablecoin inflows only temporarily resumed this week.”
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